Accounting 9.2 vocabulary

Perpetual inventory

An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of every item of merchandise

Purchase invoice

An invoice used as a source document for recording a purchase on account transaction

Purchase order

A form requesting that a vendor sell merchandise to a business

Requisition

A form requesting the purchase of merchandise

Special amount column

A journal amount column headed with an account title

Special journal

A journal used to record only one kind of transaction

Inventory

A list of assets, usually containing the value of individual items

Periodic inventory

A merchandise inventory evaluated at the end of a fiscal period

Purchase journal

A special journal used to record only purchases of merchandise on account

Purchase on account

A transaction in which the items purchased are to be payed for later

Terms of sale

An agreement between a buyer and a seller about payments for merchandise

Cost of merchandise

The amount a business pays for goods it purchases to sell

Due date

The date by which an invoice must be paid

Merchandise inventory

The goods a business has on hand for sale

Physical inventory

When a periodic inventory is conducted by counting, weighing, or measuring items of merchandise on hand